As the SEC considers how issuers should report on certain material ESG issues and the House of Representatives waits to discuss a proposed ESG reporting bill, a leading corporate governance lawyer says the regulatory environment has ‘shifted dramatically’ on ESG.
Speaking to Corporate Secretary and sister publication IR Magazine at the ESG Integration Forum last month, Gillian Emmett Moldowan, partner at Shearman & Sterling, cited the SEC’s recent proposed changes to Regulation SK as a notable example of the turning tide on ESG regulations.
The SEC’s proposed change is intended to simplify issuers’ reporting on material risk factors, therefore making the information easier for investors to review. The proposed change has garnered attention because it would require companies to report on human capital management issues as a material risk.
